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By Brendan Crowe for HomeTap
If you ask most Americans what the “American Dream” looks like, home ownership still sits at the center of it. But increasingly the excitement of closing on a home and getting the keys leads to a more complicated reality — one defined by rising costs, financial stress and a system that many homeowners feel unprepared to navigate.
A survey of 1,000 homeowners conducted by HomeTap found that 3 in 4 respondents (75.6%) still believe home ownership is part of the American dream. Yet more than half (54.5%) describe themselves as moderately to extremely financially stressed. More than 60% say they are spending a larger share of their income on housing than ever before, and nearly 80% believe their spending is growing faster than their income.
they are right
Across the board, the cost of owning a home has risen far more than most people expected — or were prepared for. And it’s not just about monthly mortgage payments. Insurance, property taxes, utilities, maintenance and renovation costs have all gone up. Although homeowners are holding record amounts of equity, most are not positioned to use that equity strategically. and as of this article HomeTap Revealingly, many are stuck in the cycle of “just trying to keep up”.
A dream without a manual
The reality is, most homeowners don’t know exactly what they’re signing up for And how would they be?
For many first-time buyers — especially those who are owning their family’s first home — the transition from renting to owning comes with a steep and largely invisible learning curve. There are no standard guidelines for what home ownership actually costs or requires after signing the papers.
Homeowners are often left to figure out the difference between homeowner’s insurance and home warranty, how to budget for unexpected repairs or contest property tax assessments. This knowledge gap adds to the already financial stress on homeowners. And unlike renters, they don’t have a landlord to call when the furnace breaks down.
What stress is driving
A number of factors beyond just inflation are widening the gap between housing costs and household affordability.
Stagnant wage growth relative to house prices. In 1970, Typical single family home Spending is about 3.9 times the median household income. That ratio has nearly doubled, reaching 7.3 today.
A chronic housing shortage. The US faces a record deficit 4.7 million housing units. With millennials entering their home buying peak and older homeowners staying put, inventory remains tight — driving up prices.
Increase in “hidden” costs. Home insurance premiums have increased on average 21% in 2023Partly due to increased climate-related risks, and an additional 11% in 2024. In high-risk states, some insurers have pulled out of the market entirely — between 2020 and 2023, 14 insurers in South Carolina will run out of funds, causing further premium increases for remaining policyholders. Property taxes add to the pressure, rising 6.9% in 2023 — double the rate of inflation that year. Nonmortgage costs, such as insurance, property taxes and utilities, have risen 35% from 2019.
Limited tax relief. A 2025 increase Salt deduction cap offer Some relief for middle-income homeowners in high-tax states, but it doesn’t address the underlying drivers of rising home ownership costs.
More expensive houses. House prices have increased 60% from 2019 As early as 2025, a growing number of willing buyers have priced out the shares before they reach the closing table — and extend it to many more.
Equity is there – but out of reach
Despite financial stress, homeowners are sitting on substantial equity. The challenge for many is accessing it and using it strategically. The HomeTap study found that even though home values have appreciated, most households don’t feel positioned to use that equity meaningfully, leaving them in a cycle of managing spending rather than building long-term financial stability.
What homeowners can do — and what policymakers are trying
Navigating the modern costs of home ownership is difficult without the right resources, but both individuals and governments are beginning to develop tools to help.
For homeowners facing mounting property tax bills, many counties offer a formal appeals process. Hiring a property tax consultant or filing an independent assessment challenge can result in meaningful savings, especially in markets where assessed values lag behind actual market changes. Likewise, insurance costs can sometimes be reduced by comparing carriers, bundling policies, or strategically investing in home improvements — retrofits like storm shutters, updated roofs, or fire-resistant landscaping that lower the risk profile and, in some states, qualify homeowners for premium discounts.
On the budget front, HUD funds a nationwide network of approved housing counseling agencies They offer free or low-cost guidance on budgeting, mortgage assistance, and home maintenance planning. D The Consumer Finance Protection Bureau’s “Home Owner” Tool Help homeowners understand their loan terms, compare interest rates and explore refinancing options.
At the policy level, some cities and states have experimented with approaches aimed at improving affordability. Minneapolis approved it 2040 Comprehensive Plan In 2018, citywide eliminated single-family-only zoning and allowed duplexes and triplexes on any residential lot. Comprehensive package of reforms, including elimination of parking minimums and upzoning along transit corridors. Credit for helping keep rent increases flat During a period when national rents rose 22%.
US federal efforts have focused primarily on supply. Bipartisan proposals to streamline the permitting process and encourage accessory dwelling unit (ADU) construction have gained traction in Congress, though no comprehensive housing package has cleared both chambers. In the near term, Housing advocates largely agree: Without an ongoing increase in housing supply, the affordability gap is unlikely to close on its own.
Homeowner’s Resilient Application
Despite the pressure, HomeTap survey data reveals that homeowners are still committed to home ownership. More than three-quarters (76%) of respondents said they still believe owning a home is worth it, and more than half (56.5%) said they feel proud to own a home – even under financial pressure.
This connection reflects how deeply homeownership is woven into the financial and personal aspirations of Americans. Sustaining it at scale, researchers and housing advocates argue, will require more than individual resilience — it will require systems, tools and policies that support homeowners not just at the point of purchase, but throughout their entire journey.
method: HomeTap surveyed 1,000 US homeowners age 18 and older through AYTM (Ask Your Target Market) in June 2025. The survey examined sources of financial stress, perceptions of income relative to home ownership costs, and behavioral trade-offs respondents made in response to rising costs.
This is the story is produced by HomeTap and review and distribution Stacker.
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Previously published at hub.stackernewswire
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